Trang 1 DECLARATIONI would like to assure you that the research topic “Solutions to enhancing the efficiencyof capital mobilization at Sai Gon Thuong Tin Commercial Joint Stock BankSacom
GRADUATION THESIS DECLARATION I would like to assure you that the research topic “Solutions to enhancing the efficiency of capital mobilization at Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) - Thu Do Branch” was learnt about and studied after the internship at Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank – Thu Do Branch) Concurrently, I would like to assure you that the information related to the bank that I have learned to use as a research paper to make the topic of thesis will be secured and only used for learning new experiences in enhancing capital mobilization at banks within the institute of finance All the information I cite is authentic and scientifically studied with absolute honesty This work was under the guidance of my supervisor MA Tran Huong Giang, the lecturer of Faculty of Foreign Languages at the Academy of Finance Hanoi, dated May 2023 Student’s signature Vu Thanh Thao Student: Vu Thanh Thao i Class: CQ57/51.03 GRADUATION THESIS ABSTRACTS To survive and grow, a business, whether large, medium, or small, operating in any field, must be run effectively Capital is one of the most significant input factor for any enterprises not just banks- a special financial intermediation in the economy Mobilizing capital is a basic activity of commercial banks The processs of mobilizing capital still faces many difficulties and the efficiency is still not high Besides the significant impacts of market factors such as: prices, continuously rising inflation, comprtitive deposit interest rates, competition among commercial banks which are getting more and more drasic,etc Facing that reality, the issue for the bank is to overcome limitations, build a good reputation and brand for customers, maintain and grow a stable capital base for customers and balacing with the use of capital to be able to stand firm Being well aware of the importance of capital and facing to the hard competition from other credit institutions, analyzing capital mobilization plays a crucial part It helps the bank to run the business better and compete the competition Indeed, the author choose the topic “Solutions to enhancing the efficiency of capital mobilization at Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) - Thu Do Branch” for the thesis The research objective of the topic is clarifying the situation of capital mobilization, properly evaluating the results, limitations and causes of limitations in capital mobilization activities, thereby proposing solutions to enhance the capital mobilization at banks Student: Vu Thanh Thao ii Class: CQ57/51.03 GRADUATION THESIS ACKNOWLEDGEMENT With sincere feelings, I would like to thank the teachers of the Faculty of Foreign Languages of the Academy of Finance for their enthusiastic and responsible teaching and guidance, creating the best conditions for me to research and complete my graduation thesis In particular, I would like to express my deep respect and gratitude to my supervisor Ms.MA Tran Huong Giang who wholeheartedly guided and guided me throughout the research process to complete this graduation thesis Besides, I would also like to thank the Board of Directors of Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) - Thu Do Branch for creating conditions and providing data so that I can best complete this thesis With all the enthusiasm and efforts in the process of researching the topic; however, due to limited qualifications, knowledge and implementation time, it is difficult to avoid existing shortcomings I would like to receive the advice and guidance of the teachers, and the valuable comments from the teachers to make the graduation thesis more complete Thank you sincerely! Student: Vu Thanh Thao iii Class: CQ57/51.03 GRADUATION THESIS LIST OF ABBREVIATIONS Sacombank – Thu Do Branch Sai Gon Thuong Tin Commercial Joint SBV Stock Bank - Thu Do Branch The State Bank of Vietnam Student: Vu Thanh Thao iv Class: CQ57/51.03 GRADUATION THESIS LIST OF FIGURES AND TABLES Figure 2.1: Organization structure of Sacombank- Thu Do Branch Table 2.1: Capital scale over the years from 2019 to 2021 Table 2.2: Structure of mobilized capital according to methods of mobilizing Table 2.3: Borrowings from the Government and SBV Table 2.4: Structure of deposits and borrowings from other credit institutions Table 2.5: Structure of deposits from other credit institutions over three years Table: 2.6: Structure of borrowings from credit institutions Student: Vu Thanh Thao v Class: CQ57/51.03 GRADUATION THESIS TABLE OF CONTENT DECLARATION i ABSTRACTS ii ACKNOWLEDGEMENT iii LIST OF ABBREVIATIONS iv LIST OF FIGURES AND TABLES v TABLE OF CONTENT vi INTRODUCTION 1 Rationale of the study .1 Aims of the study Scope of the study Methodology Organization of the study .3 CHAPTER 1: LITERAL REVIEW 1.1 GENERAL OVERVIEW OF COMMERCIAL BANK AND CAPITAL MOBILIZATION 1.1.1 Overview of commercial bank 1.1.1.1 Definition of commercial bank 1.1.1.2 Function of commercial banks 1.1.1.2.1 Act as financial intermediation .5 1.1.1.2.2 Act as agent of payment 1.1.1.2.3 Creation of money 1.1.1.3 Role of commercial bank in the economy Student: Vu Thanh Thao vi Class: CQ57/51.03 GRADUATION THESIS 1.1.1.4 Banking operations 1.1.1.4.1 Capital mobilization .8 1.1.1.4.2 Capital utilization 1.1.1.4.3 Agent services .10 1.1.2 Overview of capital mobilization 11 1.1.2.1 Definition of capital mobilization 11 1.1.2.2 Capital structure of commercial bank 11 1.1.2.2.1 Bank owner’s equity 11 1.1.2.2.2 Mobilized capital 13 1.1.2.3 Role of capital mobilization of commercial banks .14 1.2 EVALUATION CRITEIA OF CAPITAL MOBILIZATION .15 1.2.1 Scale of capital and capital growth rate 15 1.2.2 Structure of captial mobilization 16 1.2.3 Cost of captial mobilization 18 1.2.4 Relationship between captial mobilization and capital using 19 1.2.5 Different between average interest rates and average saving interest rates.20 1.3 FACTORS INFLUENCING THE RELEVANT ISSUE 20 1.3.1 Methods of mobilizing capital of commercial banks 20 1.3.2 Factors affecting capital mobilization of commercial banks .22 1.3.2.1 Subjective factors 22 1.3.2.2 Objective factors 25 CONCLUSION FOR CHAPTER 28 Student: Vu Thanh Thao vii Class: CQ57/51.03 GRADUATION THESIS CHAPTER 2: THE STUDY 29 2.1 GENERAL OVERVIEW OF SAI GON THUONG TIN COMMERCIAL JOINT STOCK BANK – THU DO BRANCH .29 2.1.1 Process of formation and development 29 2.1.1.1 Vision 30 2.1.1.2 Function .30 2.1.1.3 Mission 30 2.1.1.4 Products and services provided by Sacombank 31 2.1.2 Sacombank’s organizational structure model 32 2.2 THE CURRENT SITUATION OF CAPITAL MOBILIZATION OF SACOMBANK – THU DO BRANCH 33 2.2.1 Capital scale over the years from 2019 - 2021 33 2.2.2 Analysis of capital mobilized structure of sacombank – Thu Do Branch 36 2.2.3 Result of capial mobilization at sacombank – thu branch 40 2.2.3.1 Borrowings from the Government and the State bank of Viet Nam (SBV) .40 2.2.3.2 Deposits and borrowing from other credit institutions 41 2.2.3.2.1 Deposits from other credit institutions .45 2.2.3.2.2 Borrowing from other credit institutions 48 2.3 EVALUATION OF CAPITAL MOBILIZATION ACTIVITIES AT SACOMBANK – THU DO BRANCH 51 2.3.1 Achievements 51 2.3.1.1 Utilized different terms of deposits from other institutions 51 Student: Vu Thanh Thao viii Class: CQ57/51.03 GRADUATION THESIS 2.3.1.2 Take advantage of methods of fund mobilization 51 2.3.1.3 Focusing on increasing the number of personnal customers .52 2.3.1.4 Take advantge of deposits of customer deposits 53 2.3.2 Limitations 53 2.3.2.1 The unbalanced of mobilzed fund 53 2.3.2.2 High interest rate 54 2.3.2.3 Competitions 54 2.3.2.4 Financial infrastructure's ineffective 55 CONCLUSION OF CHAPTER 57 CHAPTER 3: RECOMMENDATIONS 58 3.1 BUSINESS ORIENTATIONS OF SACOMBANK – THU DO BRANCH 58 3.2 SOLUTIONS TO ENHANCING THE EFFICIENCY OF CAPITAL MOBILIZATION OF SAI GON THUONG TIN COMMERCIAL JOINT STOCK BANK (SACOMBANK) – THU DO BRANCH 59 3.2.1 Solutions 59 3.2.1.1 Diversifying types of capital mobilization products .59 3.2.1.2 Adopting flexible interest policy 60 3.2.1.3 Investing in modernizing banking technology and improving banking infrastructure 61 3.2.1.4 Enhancing service quality in order to compete the competitors 62 3.3 RECOMMENDATIONS TO THE GOVERNEMNT AND SBV 63 3.3.1 Recommendations to the Government 63 3.3.1.1 Maintaining macroeconomic stability 63 Student: Vu Thanh Thao ix Class: CQ57/51.03 GRADUATION THESIS 3.3.1.2 Completing legal system .63 3.3.2 Proposals to the State bank of Vietnam .64 3.3.2.1 Interest rate policy 64 3.3.2.2 Exchange rate policy 64 3.3.2.3 Forms of mobilizations 65 CONCLUSION OF CHAPTER 66 CONCLUSION 67 REFERENCES 68 APPENDIX I Student: Vu Thanh Thao x Class: CQ57/51.03